After Smartphones, LG Could Exit Another Major Business

Just a few years ago, the idea of LG stepping away from the television business would have sounded almost impossible. After all, this is the company whose roots in TVs go back nearly six decades. But now, according to reports coming out of South Korea, the South Korean tech giant may actually be considering a major restructuring of its TV division and even a possible sale. And yes, a Chinese company is reportedly part of the conversation.According to Korean outlet EBN, LG executives recently travelled to Beijing and held discussions with Chinese electronics giant Hisense regarding the future of LG’s television business. The report claims restructuring options were discussed, including a potential sale of the division itself.Neither company has

officially confirmed such talks. Responding to the reports, LG reportedly said it is “difficult to establish” claims regarding a sale without an official company-level review or announcement. Still, the timing of these reports is hard to ignore.Chinese Brands Are Reshaping The TV MarketThe global television business has become brutally competitive over the past few years. Margins have shrunk, demand has slowed and Chinese manufacturers have aggressively expanded worldwide by offering larger TVs at lower prices. Giants like TCL and Hisense are no longer “budget alternatives.” They are becoming dominant players.According to market research data from Omdia cited in the report, TCL and Hisense accounted for roughly 14 per cent and 12.5 per cent of global TV shipments last year. LG, meanwhile, has reportedly remained stuck in the low-to-mid 10 per cent range.Even more significantly, the combined TV shipment share of TCL, Hisense and Xiaomi has reportedly surpassed Samsung and LG since 2024. That would have sounded unthinkable a decade ago.ALSO READ: Google Built An AI Genius That Can’t Spell Its Own NameWhy LG Might Want OutThe answer, unsurprisingly, comes down to profitability. Reports suggest LG’s TV business has struggled with extremely thin margins despite pushing premium OLED televisions heavily. Analysts reportedly believe long-term profitability remains difficult because television margins often hover around just 1 to 2 per cent.The South Korea-based tech giant has already introduced cost-cutting measures, including outsourcing production and workforce reductions within the division.Back in 2021, LG exited the smartphone market entirely after years of losses, shutting down experimental product lines like the LG Wing and V-series phones. At the time, the company said it wanted to focus more on future-oriented sectors such as robotics, EV components and smart home technology. Many industry observers now see the TV business review as part of the same broader strategy.